INTERNATIONAL SEMINARPLATFORMS AND DIVERSITY:

NETFLIX UNDER DEBATE

NETFLIX IN ARGENTINA

GUILLERMO MASTRINI (UNQ; UBA, CONICET, OBSERVACOM)

@GMASTRINI

FERNANDO KRAKOWIAK (UBA)

ARGENTINA´S AUDIOVISUAL SECTOR• 8th country with television around the world.

• 80% of households have pay TV (shows willingness to pay).

• 61.4% of houses have access to Internet, but most prepaid low speed services (trouble for streaming).

• Audiovisual system is consolidated and concentrated.

• High interest in Live Sports (that were offered by open TV at Neflix´s launch and now are offered by pay TV)

NETFLIX IN ARGENTINA• Launched in 2011. Second wave of international expansion after

Canada.

• Constant growth of suscribers.

• Additional to paid TV, no substitution.

•Open TV decreases its shares.

• 10% of households have NETFLIX. More users are sharing their accounts. There aren’t real facts about NETFLIX´s users.

NETFLIX DEVELOPMENTYears Subscribers

2011 57,000

2012 130,000

2013 250,000

2014 310,000

2015 700,000

2016 750,000

2017 850,000 0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

2011 2012 2013 2014 2015 2016 2017 2018

Abonados a Netflix e

COMPETETITION AND COMPLEMENTARITY• Distribution agreements with paid TV (Telecentro: 2015); (Movistar:

2018); (Cablevisión Flow, 2019). Netflix’s button, Payment System.

• Agreement with Telefé contents (Like Antena 3).

• Agreements with most important producers in 2017, but production is delayed for economic reasons. Very few realeses until 2019.

OTT AND TVE MARKET SHAREYear 2016 % MarketNetflix 60.8Movistar 13.6Arnet Play 12Personal 8.7Qubit 2.2Claro 1.1Amazon 0.12HBO 0.05Otros 1Cinear 0

Netflix61%Movistar

14%

Arnet Play12%

Personal9%

Qubit2%

Claro1%Amazon

0%HBO0%Otros1%Cinear

0%

% Market

Netflix

Movistar

Arnet Play

Personal

Qubit

Claro

Amazon

HBO

Otros

Cinear

MAIN OTT COMPAREDNetflix Flow Claro Movistar

Releases rental No Yes Yes YesSeries 1397 200 s/d 600Own production Yes Yes s/d YesArgentine channels No Yes No YesSoccer No Yes No YesHBO No Yes Yes YesFox No Yes No YesTV live No Yes Yes YesDevices simultaneoutlyused

4 2 4 2

Use in other countries Yes No No NoAllows downloading towatchoffline

Yes Yes Yes No

4k Yes Soon No Soon

CONTENT OFFER. NETFLIX ORIGINALS

• Smaller catalogue than USA, but similar to Brazil and Mexico.

• Research carried out on April 3rd 2018.

• 591 references. 296 series (50%), 142 movies (24%), 118 stand up/talk show (19.9%), 4 shorts (0.6%) and “others” (5.2 per cent).

•Most of the content is less than two years old.

CONTENT BY ORIGIN. NETFLIX ORIGINALSCountry Production Co-production Total %

United States 363 21 384 65.0United Kingdom 42 7 49 8.3Japan 35 2 37 6.3Canada 21 11 32 5.4Mexico 16 2 18 3.0France 11 5 16 2.7South Korea 12 --- 12 2.0Spain 9 1 10 1.7Australia 8 2 10 1.7Germany 2 6 8 1.3Brazil 6 --- 6 1.0Colombia 5 1 6 1.0Argentina 4 --- 4 0.7

ARGENTINE CONTENT

•Only 4 Argentine productions on “Netflix Originals” (0.7%)

• In August 2018 website uNoGS.com shows a total of 4377 products in Argentina´s catalogue, with 62 local productions, this is 1.5%

NETFLIX ORIGINALS• 1) Series predominance, (50%), followed by movies (24%).

• 2) 80.5% was released in 2016, 2017 or 2018.

• 3) 65% of productions are from USA, 17.7% from Europe and 8.6% from Asia. Latin America has only 6% and Argentina 0.7%.

• 4) Latin American content focuses in low budget content like stands up/talk show.

NETFLIX STRATEGY IN ARGENTINA

• Two offices in Argentina: purchases and production

• Agreements with credit cards and paid TV distributors in order to overcome low levels of banking services use.

• High participation in social networks and innovative advertising campaigns: “Don´t watch Netflix”.

• Agreements with main Argentine production companies: Netflix maintains control of art decisions

• Low levels of production.

• No specific regulation.

• 2017: Law presented by Socialist Party: OTT register, % national production quota, 5% Tax.

• As from 2018, OTT should pay Tax Value.

• Some provinces try to tax OTT, but is still difficult to implement.

PUBLIC POLICIES

OTT AUDIENCE IN ARGENTINA

• 32% of Internet suscribers uses OTT, only exceded by open TV with 37%

• Predominant between centennials and millennials

•Women OTT audinces are larger than men

NETFLIX CONSUMPTION IN ARGENTINA• There is no Netflix data. Private consulting firms show different data. A group of 20,

2017-most watched productions are selected in Argentina averaging the same.

• USA ranks first in the list with 10 productions (45.5%), followed by Spain with 5 (22.72%). The rest of the countries in the list of the most watched productions on Netflix are: Argentina, Colombia, Canada, Ireland, Mexico, France and the United Kingdom with 1 series each. Productions in Spanish have a special place, since if Spain, Mexico, Argentina and Colombia production is added, it results in a 36.36% of the total production.

• 14 out of the 20 are Netflix Originals.